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    Overtime Pay

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    Reizel Jane Pascua
    This document discusses overtime pay and employee benefits under Philippine labor law. It defines overtime as work performed beyond regular working hours and outlines various cash and non-cash benefits that employers must provide to wage earners, including 13th month pay, retirement benefits, maternity/paternity leave, bonuses, allowances, and minimum wage tax exemptions. It also provides examples of calculating retirement pay, 13th month pay, maternity leave pay, sick leave pay, and allowances based on an employee's salary and years of service.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Overtime Pay

    Uploaded by

    Reizel Jane Pascua
    84 views25 pages
    This document discusses overtime pay and employee benefits under Philippine labor law. It defines overtime as work performed beyond regular working hours and outlines various cash and non-cash benefits that employers must provide to wage earners, including 13th month pay, retirement benefits, maternity/paternity leave, bonuses, allowances, and minimum wage tax exemptions. It also provides examples of calculating retirement pay, 13th month pay, maternity leave pay, sick leave pay, and allowances based on an employee's salary and years of service.

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    This document discusses overtime pay and employee benefits under Philippine labor law. It defines overtime as work performed beyond regular working hours and outlines various cash and non-cash benefits that employers must provide to wage earners, including 13th month pay, retirement benefits, maternity/paternity leave, bonuses, allowances, and minimum wage tax exemptions. It also provides examples of calculating retirement pay, 13th month pay, maternity leave pay, sick leave pay, and allowances based on an employee's salary and years of service.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    84 views25 pages

    Overtime Pay

    Uploaded by

    Reizel Jane Pascua
    This document discusses overtime pay and employee benefits under Philippine labor law. It defines overtime as work performed beyond regular working hours and outlines various cash and non-cash benefits that employers must provide to wage earners, including 13th month pay, retirement benefits, maternity/paternity leave, bonuses, allowances, and minimum wage tax exemptions. It also provides examples of calculating retirement pay, 13th month pay, maternity leave pay, sick leave pay, and allowances based on an employee's salary and years of service.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 25

    Overtime Pay

    PREPARED BY: REIZEL JANE PASCUA


    Learning Objective
    • Compute overtime pay
    Overtime
    • It is the amount of time of a person
    works beyond working hours.
    Income
    • Money earned by working or
    through investments.
    • It is a money that an individual
    receives in exchange for providing a
    good/service or through investing
    capital.
    Benefits
    • A payment or gift made by an
    employer, the state, or an insurance
    company.
    • It is an employee compensation
    given by an employer on top of the
    basic salary/wage.
    Benefits
    • Note that benefits may come in the
    form of cash or in kind.
    1. Cash Benefits: 13th month pay,
    bonuses, rice subsidy, transportation
    allowance;
    2. Non-cash benefits: SSS/GSIS, Pag-
    ibig, PhilHealth
    Benefits
    • Presidential Decree No. 442, also
    known as the Labor Code of the
    Philippines, provide a list of benefits
    for wage earner.
    The Benefits of the Wage
    Earner
    • Long – term benefits: retirement,
    death, disability
    • Minimum wage earner tax
    exemption
    • Bonuses and allowances: travel, rice,
    meal clothing, and laundry
    The Benefits of the Wage
    Earner
    • 13th month pay, holiday pay, special
    pay, overtime pay, night shift
    differential, and hazard pay.
    • Leave incentives: sick, maternity,
    paternity, solo parents, and others.
    • Health – related benefits and insurance
    Retirement
    • This benefits is like a savings
    account.
    Minimum Wage Tax
    Exemption (RA 9504)
    • If the employee’s salary is the
    minimum set by the Department of
    Labor and Employment for each
    particular region in the country, then
    the employee is entitled of the
    exemption.
    Maternity/Paternity Benefit
    • This benefit can only be availed by a
    female or male employee when the
    female employee will deliver a child,
    and for cases the male is needed, the
    male can apply for a leave as
    provided in the Paternity Leave Act
    of 1996 (RA 8187).
    Bonuses/Allowances
    • Travel, rice, meal, clothing, etc.
    • These are some amounts given by
    the company to their employees for
    them to enjoy.
    Computation of Benefits
    Retirement Benefit
    • The minimum retirement pay is
    given by:
    • R = retirement pay
    • P = daily rate
    • T = number of years served
    Retirement Benefit

    𝑅 = 22.5 × 𝑃 × 𝑇
    13th Month Pay
    • Let x be the annual basic salary of an
    th
    employee. The 13 month pay of
    1
    this employee must be of x.
    12
    Maternity Benefit
    • Let x be the annual basic salary of an
    employee. Then 2.6x and 2x for
    caesarean and normal delivery,
    respectively.
    Holiday Pay
    • It refers to the payment of the regular
    daily wage for any non-working
    regular holiday
    • Note that if an employee worked on
    a holiday, then he will receive twice
    his daily wage.
    Example
    • Mr. Larry served ABC Company for
    22 years with an average daily rate
    of ₱467.35. he plans to retire and
    avail his retirement benefit. How
    much is the minimum retirement pay
    that he will receive?
    Example
    • Mr. Torres plans to retire and utilize
    his retirement benefit. How much is
    the minimum retirement pay that he
    will receive for serving the company
    in 15 years with an average daily rate
    of ₱481.23?
    Example
    • Mr. Buenaventure receives an annual
    salary of ₱240,000. At the end of the
    year, what would be his 13th month
    pay?
    Example
    • Mr. Reyes daily rate is ₱765, and is
    given a sick leave of 30 working
    days. Suppose the sick leave benefit
    is convertible to cash and he has
    incurred 7 absences only (all due to
    sickness). How much will he get?
    Example
    • The total allowances of Company
    Magand give to their employees is
    exactly 15% of their salary. Mr. Pogie’s
    salary this month is ₱27,345.56, where
    his allowances are meal and clothing. If
    his clothing allowance is fixed at
    ₱2,500, then what is his meal allowance
    of the month?
    PREPARED BY: REIZEL JANE PASCUA

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